BEIJING: Iron ore imports by China, the world’s top consumer, fell 11.6 percent in May from a month earlier, customs data showed on Monday, as bad weather reduced Brazil’s shipments and some high cost miners quit a market that hit multi-year lows in April. The reduced availability of imports forced Chinese steel mills to buy from stocks held at ports, helping to boost spot ore prices by a third from April’s low of $46.7 a tonne.
Imports totalled 70.87 million tonnes in May, to stand 8.4 percent down from a year ago, customs data showed. Total imports for the first five months were 378.1 million tonnes, down 1.1 percent from a year ago. Iron ore arrivals are expected to rebound in June due to increased supplies from big miners. But demand could remain subdued as a slowdown in the world’s second largest economy is expected result in a 6 percent fall in China’s steel consumption this year, the China Iron and Steel Association has said.
Separately, Chinese steel exports rose 7.7 percent to 9.2 million tonnes in May from the previous month, the highest in four months, data showed, as mills boosted overseas sales to offset shrinking domestic demand growth. China has sought to rein in exports to avoid growing trade friction and to ease overcapacity, but solid demand in the international market and weak sales at home has encouraged mills to increase shipments. Exports rose in May to stand 14 percent higher than a year ago. Total imports for the first five months jumped 28 percent to 43.52 million tonnes from the same period of last year.
